Accounting shake-up spells end for fake mergers
Article Abstract:
The International Accounting Standards Committee (IASC) is considering revising some of the accounting procedures in the field of acquisitions and mergers. The European Union is supportive of company accounts becoming more open. Some observers suggest the US may face difficulty in adapting to the new rules. The IASC plan to stop acquiring companies writing off their own restructuring costs. It also will look into cutting the number of company takeovers which are falsely declared to be mergers, in order to reduce their goodwill payments.
Publication Name: Acquisitions Monthly
Subject: Business, international
ISSN: 0952-3618
Year: 1999
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Pooling to be banned by US regulator
Article Abstract:
Strong pressure from international accounting authorities has prompted the US Financial Accounting Standards Board to decide to ban pooling-of-interest deals by the end of 2000. Poolings, which combine net asset values of the merging parties, have been used very successfully since 1996, especially for domestic US deals. However, they are already banned in other leading merger and acquisition markets. Experts believe that it is difficult to anticipate the repercussions of this decision.
Publication Name: Acquisitions Monthly
Subject: Business, international
ISSN: 0952-3618
Year: 1999
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Comment about this article or add new information about this topic: